Jewel One enters retail market

Just as the jewellery retail sector is turning hot, one of the largest manufacturers and suppliers of gold jewellery to the industry, Emerald Jewel, is entering the retail trade through a business associate at Puducherry on Friday.

In an interview to Business Line , K. Srinivasan, Managing Director, Emerald Jewel Industry India Ltd, Coimbatore, said the first store under the Jewel One brand will open on November 23 at Puducherry.

There were two reasons for choosing that city for making a break into retail business-the Business Associate there had completed the required formalities as per the requirement and more importantly, Puducherry’s population reflected a cosmopolitan outlook.

He said the company intends to open 10 stores during the remainder of the current fiscal year and added that he will wait for two to three months to guage the response before going for the next phase of branch expansion. He expects that during 2013-14, around 25 stores might be opened.

Srinivasan said to power his retail foray he wanted to have a business model having a mix of franchises and his own outlets. He felt that this was a “growth guaranteed model” as he would share the platform with scores of discerning franchisees and as it was largely a design specific model, “therefore, success is assured”.

Asked how he would ensure exclusivity of products that he would sell in his showrooms as he would also supply ornaments to others in the trade, he said he was having more than one-and-a-half lakh designs in his repertoire. He planned to showcase exquisite/ unique designs in the Jewel One stores. He did not think there would be any conflict of interest between the two businesses as customers would have a wide variety to choose from and the retail business would be “complementary to our existing business”.

He said the stores launch did not involve any big investment from his side as much of it “will be taken care of by our Business Associates”.

Srinivasan said at present his manufacturing units were operating at 70 per cent capacity utilisation. He was planning for expansion and entry into platinum jewellery manufacturing besides making “gold ornaments in enlarged verticals”.

On whether he was planning to go public particularly at a time when jewellery stocks have turned hot favourites, he remarked, “we do have plans for an IPO but not immediately”. He explained that the issue size would depend on the market conditions at that time and his actual requirements. “It is too early to fix the issue size now,” he said.

He conceded that “jewellery stocks are doing well at this juncture”. He preferred “to consolidate ourselves, strengthen the distribution channels and dealer base and then go for public issue at an appropriate time”.

On whether he would expand his retail business beyond Tamil Nadu, Srinivasan said right now he planned to have stores in the State. Later on, he planned to have a pan-Indian presence as ‘Jewel One’ was an established brand marketed by him in wholesale business. While his product range was enormous, he would focus on light weight jewellery keeping in view the spike in gold price. His design teams were from Kolkata, Mumbai, Delhi & Coimbatore. He was already into manufacture of diamond jewellery and his retail outlets would also market them.